"More important, management appears open to the idea of
selling stakes in Bloomberg and/or BlackRock, having previously
resisted the idea," analyst Roger Freeman wrote in a research
note.

Earlier this week, Merrill Chief Executive John Thain said
on a conference call that the brokerage would consider selling
its stakes in news and financial data company Bloomberg and
money manager BlackRock Inc (BLK.N: Cotización) if it needed more capital.

Thain also said Merrill is "well capitalized," but added
that the company had last year considered selling its stakes in
BlackRock, worth roughly $13 billion, and Bloomberg, worth
about $5 billion to $6 billion.

"Given the extent to which Merrill shares have fallen since
the prior two capital raises, issuing equity has become a very
expensive proposition," Freeman wrote. "Consequently, asset
sales may be more palatable."

Merrill in December and January raised more than $12
billion from outside investors, including sovereign funds like
Singapore's Temasek Holdings [TEM.UL] and the Kuwait Investment
Authority.

These capital raises came as Merrill, which is one of Wall
Street's largest investment banks, recorded more than $30
billion in writedowns since its third quarter. Merrill's shares
have fallen by about a third this year.
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